China Eximbank provides $68.77 million preferential buyer's credit for Xieng Khuang Airport Upgrading Project

On August 18, 2011, the Ministry of Public Works and Transport of Laos and China CAMC Engineering Co Ltd. signed an $80.9147 commercial (EPC) contract for the Xieng Khuang Airport Upgrading Project. China Eximbank reportedly agreed (at least in principle) to issue a preferential buyer’s credit (PBC) to finance this contract. The precise face value of the PBC is unknown, but since China Eximbank PBCs typically finance 85% of the total cost of a commercial (EPC) contract, AidData assumes that the face value of the PBC was $68.77 million (85% of $80.9147 million). This project involved the reconstruction and extension of the existing runway, the construction of a new terminal, the installation of a lighting system and navigation system, and the upgrading and reconstruction of auxiliary airport facilities such as the drainage system at Xieng Khuang Airport. The airport is located in the town of Phonsavan within Xieng Khouang Province. CAMCE was the EPC contractor responsible for implementation. However, AidData has not identified any evidence that this project was ever implemented.

Additional details

This project is also known as the Xieng Khouang Airport Upgrading Project. One of the CAMCE sources refers to this project being financed with a ‘concessional loan’ from China Eximbank. However, the same source describes two other Lao airport projects (Project ID#35756 and Project ID#33794) as being financed with China Eximbank ‘concessional loans’ when in fact we know that they were financed with preferential buyer’s credits.

Number of official sources

3

Number of total sources

3